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New BAH rates for 2019 rise 2.5 percent

The Pentagon on Friday released the new 2019 Basic Allowance for Housing rates that will take effect in January, which show that service members on average will see a 2.5 percent uptick in housing allowance.

The new BAH rates are intended to cover 95 percent of estimated housing costs, so individual service members will have to cover about 5 percent with out-of-pocket cash. That will likely range between $66 and $149 monthly depending on rank and dependency status.

Individual rate protection will remain in effect, meaning that service members will see an increase if their locality shows a rise in BAH, but if BAH drops (due to declining rental rates in their region) the individual service members will see their BAH hold steady at last years’ rate. Only service members moving into that area for the first time this year would receive the lower rate. This ensures members who have made long-term commitments in the form of a lease or mortgage are not penalized if the area’s housing costs decrease.

The new BAH rates will also affect veterans using the GI Bill, which calculates the benefits housing stipend based on the rate that would be provided to an E-5 with dependents.